Retail Marketing Competition Conundrum – Financial Post Weighs In

The entrance of Target onto the Canadian retail scene has had a lot of tongues wagging over the last year – for a number of reasons – but as a recent Financial Post article suggests, one of the biggest reasons is its impact on competition.

If you are a retailer in the CPG industry, you are no doubt aware of the high level of competition out there. The stakes are high, and if you can’t keep customers coming through those doors, you might as well close them. As a the article, titled “Food fight among retailers expected to continue keeping prices lower,” proposed, price plays a big role – but is it the only factor?

Is cost the only thing that keeps customers coming back? No – and even if your prices are on par with other retailers, that doesn’t necessarily equal sales. When a customer shops, they are not only looking for the best deals and a variety of choices, they also shop at certain locations because of the atmosphere – even if unconsciously. If a customer enters a store and makes his/her purchases and has an overall positive experience, they will return. If, however, they leave the store feeling dissatisfied or put out by the experience, the chance of them returning has now seriously decreased. It isn’t rocket science – so why ignore it? 

We all know what things make the customer happy - helpful staff, a clean store, products on the shelf, not having to wait long at the checkout – so is your store making the most of the resources available and ensuring that when a customer leaves, they are leaving with the intention of returning?

The Financial Post article argues that most CPG retailers are using specific products as loss leaders to draw the customer in with the hopes that they will spend more on the bigger ticket items. We argue that this is not enough. If your prices are great but the shopper always leaves displeased, there is no guarantee that they will choose your store again.

In order to compete, customer experience should play a major role in your retail marketing. Whether this means increasing your staff during peak times to avoid line ups or to restock shelves, merchandising the store to make it more appealing, or even dealing with emergency product recalls in a timely manner, you need to be prepared.

To find out how you can beat the competition with a retail marketing strategy that sells, please contact Storesupport today by calling 1-877-421-5081, or visit us online at www.storesupport.ca.

Pump it Up: 5 Merchandising Strategies to Increase Sales

No matter how you look at it, your bottom line is directly related to how you conduct your merchandising. Customers, even if unconsciously, notice things about your store that you may not realize. Sure, maybe you have a plan in place that draws the attention of some, but if it is just catered to one segment of your target market, the others are being ignored. The most successful merchandising strategies are ones that cater to a number of different consumers.

Are you still counting on a one-size-fits-all approach to merchandising? It might be time to rethink things. Here are some ideas to get you started:

Colour – Different colours elicit different emotional responses. As a result, when shopping, people make, usually unconsciously, connections and associate certain colours with certain feelings, knowledge, etc.  Here are just a few ways to use the psychology of colour:

o   Green – natural or eco-friendly products

o   Black – high quality or premium products

o   Pink – products for girls or women

o   White – pure (think laundry detergent)

o   Red – products that are romantic or exciting 

Theme – Chances are pretty good that a few weeks ago your store was decorated for the holiday season. This, like colour, helps to create an emotional connection between your shopper and your store. But don’t just take advantage of different seasonal differences or annual holidays with your displays. Create themes that bind products together. For example, when designing an endcap, perhaps think about items that work well together – this might be school lunch products or barbeque necessities. This will help entice customers and increase sales.

Eye Level – When you stage your shelves, think about who you are targeting: parents, children, men, women.  Depending on the height of your consumer, where you place your product is crucial.

Variation – Stagnant displays = stagnant sales. Every few weeks things need to change, otherwise customers will get bored. When you change displays, customers’ attention is drawn to the change, especially if it is exciting or garners an emotional or thought-provoking response. We are not talking about revamping the entire store here either - even a subtle tweak to shelving arrangement can do the trick. This helps to make the customer feel as though they are being introduced to something new.

Cleanliness – Ok, this one is more of a rule than a strategy, but it can sometimes be easy to forget how much of an impact this can have on your bottom line. Debris on the ground or displays that are not tidy can turn a customer off – so make sure that things are in good shape at all times.

Need some help implementing some of these merchandising strategies? We can help. Storesupport has the team and the resources to get your plan underway. Contact us today by calling 1-877-421-5081, or visit us online at www.storesupport.ca.

RetailWire – What Generational Differences Mean for Your Merchandising

It is no surprise today to find that generation gaps are highly influential when it comes to your merchandising. Individuals in different demographic sectors want different things. Their expectations when it comes to not only the products they purchase but their overall experiences vary greatly, and as such require different marketing methods.

A recent release from RetailWire got us thinking about generational differences and what they mean for your merchandising, so we thought we’d share it. The article, “Gen X Wants the Steak, Gen Y Wants the Sizzle Too,” looks at a recent study done by GfK. This Brand Benchmark survey found that “Generations X and Y are attracted to functionality, the Gen Yers place more value on brand image.”

According to GfK, brand image has a lot to do with perception – is the brand trustworthy? Does the brand understand consumer needs? Are they reliable and committed? These are what influence Gen Yers the most. Quality and visibility also factor in here.

For Gen X and Gen Y shoppers, functionality reigns supreme. This means whether or not the product does what they need it to do, perhaps without the added buzz, is the Gen Yers are looking for.

So what? Why does this matter? Well, when it comes to your merchandising these generational differences should play a major role. For more information, check out the full article here: http://www.retailwire.com/discussion/17195/gen-x-wants-the-steak-gen-y-wants-the-sizzle-too

For more about how to make sure that your merchandising addresses these differences please contact Storesupport today by calling 1-877-421-5081, or visit us online at www.storesupport.ca.

What’s Trending in Visual Merchandising

Visual merchandising is a key component in any successful merchandising campaign. Effective campaigns improve profitability and expose consumers to more within a store. Knowing this, many retailers are taking advantage of the opportunities that visual merchandising represents.

A newer generation of visual merchandisers has taken what's hot (various forms of social media) and worked these components into different campaigns.  Things like hashtags and the "like" symbol are not difficult to spot when browsing store displays.

Shelving has also encountered a revolution when it comes to merchandising trends. Not only are endcaps more popular, but the way in which they are organized is too, as are focal points within store isles themselves. Whereas complete uniformity used to be the way to go, a change in scenery can draw the eye and stop tunnel vision. Displays that draw the eye are what you really want.

 

Colour is also becoming a major player, and not only in product packaging. Since people associate different colours with different emotions, another growing trend is to play up those associations and appeal to customers on an emotional level with your displays.

Now, more than ever, customers are concerned about the impact their purchases will have on the environment, and so when it comes to merchandising this can translate into sales. If your displays represent a focus on environmental awareness, customers will notice.

 

If your visual merchandising needs a facelift, the trends are the way to go. Don’t just stick with the same-old strategy: it is eventually going to end up costing you.  If you are not sure where to start, a company dedicated to executing successful visual merchandising campaigns that make use of the most cost-effective yet profitable strategies can help get you started.

For more about the hottest trends in visual merchandising for 2014 please contact Storesupport by calling 1-877-421-5081.

Canadian Consumer Trends – Does your Merchandising Strategy Measure Up?

When you develop a merchandising strategy with the thought of increasing your bottom line, the best way to start is by analyzing current consumer trends. A recent CBC report, “5 Canadian Consumer Trends to Shape the Future of Retail,” did just that by looking at what consumers want from their retailers. The Business Development Bank of Canada study found that “value-conscious Canadians want local, healthy, customized goods they can research online.”

The report outlines the top 5 consumer trends:

1.      Trend #1: The buy-local movement. According to the report, Canadian consumers are shopping close to home. In the past year, 45% of respondents reported buying locally-made Canadian products for both ethical and environmental reasons.

2.      Trend #2: Rising health awareness. Canadians as a whole are becoming more health conscious and their buying choices reflect that, especially when it comes to aging consumers. 50% of Canadians consider the health impacts when making a decision to buy, and one-third will pay a premium for products that are better for them.

3.      Trend #3: Frugality. Even as the economy continues to stabilize, for many Canadian households incomes remain stagnant and debt is still an issue for many individuals. With this in mind, many Canadian consumers report still being mindful of prices and cautious when it comes to spending. This is especially important when it comes to those retiring baby boomers living on fixed incomes.

4.      Trend #4: The desire for customized goods. So many customers are looking to purchase exactly what they want these days, and won’t settle for just anything. New technology has made it possible for them to make these purchases, so offering a variety of goods is a smart strategy to entice consumers.

5.      Trend #5: The impact of the internet. This one is huge, but even so, some retailers are still trying to ignore it. Consumers can now do an immense amount of research online before they finally make the decision to head in-store to buy. At the same time, online shopping continues to account for an increasingly large portion of consumer spending, so ignoring online sales all together is a bad idea.

These Canadian consumer trends are not exactly surprising, and for the most part these results correlate with things that have been happening over the past few years. With that said, they have grown in importance and as a retailer you can no longer ignore their impact.

For more about what the results of this study mean and how you can implement a plan to take advantage of them, please contact Storesupport today at 1-877-421-5081, or visit us online at www.storesupport.ca.

Check out the complete article here: http://www.cbc.ca/news/business/5-canadian-consumer-trends-to-shape-the-future-of-retail-1.2129072

The Future of Retail: A Consumer Perspective

It is not news that things in retail have been changing, and continue to change, with the newest tech advances in the marketplace. For a few years now online shopping has made huge headway when it comes to retail trends, and the preferences of shoppers everywhere are beginning to shift. Consumers are no longer content to have just one avenue to conduct their shopping.

Check out this interesting infographic Business Insider which looks at the future of retail from a consumer perspective.  It is based upon a global study, but much of the information contained within it is quite illustrative of the trends seen throughout individual nations. 

 

 

The Consumer Perspective:

-        60% of consumers want access to multiple retail channels (web, mobile, physical). This means that retailers should have various channels open and in use.

-        Consumers want some recognition – 61% said they want online stores to keep track of their purchases to make things easier the second time around.

-        56% said they would spend more at bricks and mortar stores if they could browse through their merchandise online first – so make sure to have a website up that gives at least a taste of what you offer.

-        30% responded that they didn’t think most stores were ready for these trends yet. Are you?

To meet the growing needs of today’s consumers you have to be ready. As this infographic demonstrates, the expectations are there – be sure that you can meet them.

For more on the future of retail and how to meet customers’ expectations please contact Storesupport today by calling 1-877-421-5081.

Bricks & Mortar Stores – Downsizing Your Footprint? Strategies for Success

2013 was a huge year for many big box stores when it came to downsizing or consolidating. A number of well-known stores chose to close locations over the past year, some as a response to the growth of online sales and others as a result of declining sales.  And this trend continues with several other stores looking to downsize their bricks and mortar footprint in the New Year. 

This downsizing trend can be a major project, one that requires planning and organization. Both retailers and brands located at retail need to be mindful of the impacts that a poorly executed downsizing can have on brand recognition and customer loyalty. So how can you maintain consistency during this process?

Whether you are a retailer or a brand, we’ve got some downsizing best practices to adopt for success.

Retailers: When you downsize, who is going to handle the extra work that comes with that? Your regular staff? If so, who will handle customer service? People support can be a huge part of any downsizing project. When you are moving to a different location, extra hands on deck are crucial to ensure efficiency. Whether you are moving stock, setting up shelves, or restocking, having enough people to handle the job is essential. Just because your store is going through a transition doesn’t mean that service should suffer – otherwise your reputation and image will suffer as well. A company that can offer the experienced and professional people support you need is the best way to go.

Brands: Planogram compliance is going to be a major challenge when it comes to a retailer’s decision to downsize. When you first set up your planogram, you likely made sure that it was done properly or were aware of compliance issues. However, once a store moves and the responsibility to correctly set up your planogram falls into the retailer’s hands, it can be difficult to ensure compliance. Instead of worrying about that, find a professional merchandising company to take care of it. This way you can ensure the plan is followed to your exact specifications and that any issues will be handled immediately.

If you are planning to downsize in the coming months, or know of a scheduled downsizing that may impact the performance of your brand, you need to be prepared. Waiting until the last minute is a surefire way to encounter problems, and so why not get things organized well in advance – that way you can tackle any issues as they arise without having to worry about planning at entire move or renovation at the same time.

Planning to downsize in the future? Let Storesupport help you cover all the bases. Contact us today by calling 1-877-421-5081.